Fuel prices in the Philippines increased for the fourth consecutive week on Tuesday, July 21, due to ongoing tensions in the Middle East, which is driving up global oil prices. These recent increases at gas stations have been substantial, once again prompting transport workers to demand fare hikes nationwide.
The price increase for diesel fuel reached up to 11 pesos (0.65 dirhams) per liter on Tuesday, marking the most significant jump since the resumption of clashes in the Persian Gulf. Kerosene showed an even greater increase, rising by 12 pesos (0.71 dirhams) per liter, while gasoline rose by 4 pesos (0.24 dirhams) per liter.
On average, diesel fuel currently costs 78.59 pesos (4.69 dirhams) per liter, and gasoline costs 80.59 pesos (4.80 dirhams) per liter. Secretary of the Department of Energy Sharon Garin linked the monthly price increase to the escalating tensions in the Middle East but assured that the Philippines has a 49-day buffer in case supply routes narrow further due to the expanding war.
Armed forces from both sides warn of 'active combat operations' against vessels passing through the Red Sea, including those related to Saudi Arabia. Meanwhile, the Philippines sources 80 percent of its fuel supply from this region.
In the meantime, public transport federations have resumed submitting petitions demanding fare increases. Liberty De Luna, president of the Alliance of Concerned Transport Organizations (ACTO), stated that it is time for Philippine President Ferdinand Marcos Jr. to approve a basic fare increase of 1.00 peso.
De Luna recalled that although their petition was initially approved by the transport regulatory board in March, Marcos ignored it, opting instead to provide cash assistance packages and fuel discounts at certain gas stations in major cities. ACTO clarified that their petition for fare increases was submitted even before the conflict between the US, Israel, and Iran began in late February, and it originally called for a fare increase of 3.00 pesos for the first four kilometers of travel.
However, a group of passengers cautioned against fare increases, suggesting that public consultations should be held first. Passenger Forum representative Mike Kinto stated that fare increases should be a last resort, and the Marcos government should implement other forms of intervention.
In response to growing calls to suspend fuel taxes amid Middle East tensions, Marcos Jr. temporarily suspended excise taxes on cooking gas and kerosene. Nevertheless, despite special powers granted by Congress, the Philippine president refused to suspend the value-added tax and excise taxes on diesel fuel and gasoline.
Marcos justified his refusal by stating that canceling taxes on transport fuel would not bring tangible benefits to consumers but would instead lead to a loss of government revenue of up to 43.6 billion pesos (2.59 billion dirhams). However, higher fuel costs brought more benefit to the government than expected: imports of fuel reached 83.41 billion pesos (4.96 billion dirhams) by mid-April.
As compensation, the Marcos government allocated 15.375 billion Philippine pesos (916.4 million dirhams) in direct cash aid to low-income families and overseas workers to mitigate the effects of the new Middle East crisis and subsequent global oil shocks. Joseph noted that not everyone affected by oil shocks receives government aid. He emphasized: 'As a public transport driver, I worry about the cost of diesel fuel. It directly affects whether I can earn a living doing this job.'
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Taiwan Semiconductor Manufacturing Company (TSMC) forecasts an adjustment in its chip manufacturing services, with increases potentially reaching 10% in 2027. This adjustment will apply to both mature and advanced processes.
The increase aims to offset growing costs related to materials, equipment, and the construction of new fabrication facilities. The information was gathered by Nikkei Asia through various sources informed on the matter.
The company, which produces chips for other corporations, has notable clients such as Apple, Google, Nvidia, Qualcomm, Amazon, and MediaTek. The price adjustment is expected to be implemented at the beginning of 2027, following discussions between TSMC and its clients in June, with the final decision made in July. Sources indicated that this more cautious approach aims to allow clients to adapt to the new price levels.
TSMC's services are divided into two main categories. The advanced chip line, covering 7-nanometer lithography processes or smaller, accounts for 77% of the company's revenue and is used in smartphone processors. For these advanced chips, the projected increase ranges between 5% and 10%, varying according to the contractor and the product. Additionally, orders exceeding previous projections may incur an extra charge of 10% to 15%.
The second line refers to mature chips, which include technologies such as 12 nm, 16 nm, and 28 nm, accounting for 23% of revenues. Although these are older technologies, these components continue to meet the needs of simpler electronics well. In the consolidated chip segment, increases can also reach 10%, although many products remain below this percentage.
Nikkei Asia points out that several elements of the supply chain have seen cost increases, including labor, raw materials, chemicals, and logistics. There has been a rise in the prices of items such as fiberglass fabric, printed circuit boards, lasers, and encapsulation packaging in recent months.
Furthermore, massive investment in building data centers for artificial intelligence has rapidly driven up demand for different types of semiconductors, increasing the prices charged. The scenario is also influenced by the dispute between the United States and Iran, which contributes to inflation in gas and oil costs. The publication also mentioned that Intel and AMD recently made similar price movements.
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It is important to note that the ASUS TUF Gaming F16 does not come with Windows; it comes with KeepOS (a Debian-based Linux distribution). To use specific software or play most AAA titles, you need to purchase the Windows license separately, which must be considered in the final budget.
